BMW 2012 Annual Report Download - page 121

121 GROUP FINANCIAL STATEMENTS
Pension provisions relating to pension plans in other
countries amounted to € 557 million (2011: € 443 million).
This includes € 447 million (2011: € 350 million) relating
to externally funded plans. The provision for pension-
like obligations for post-employment medical care in the
USA and South Africa amounts to € 119 million (2011:
€ 120 million) and is measured, similar to pension obli-
gations, in accordance with IAS 19. In the case of post-
employment medical care, it is assumed that the costs
will increase on a long-term basis by 6 % p. a. (unchanged
from the previous year). The expense for medical care
obligations in the financial year 2012 was € 12 million
(2011: € 9 million).
The increase in defined benefit obligations results mainly
from the change in the discount rate used for the actu-
arial computation in Germany, the UK and the USA.
The impact of this on pension provisions was not fully
offset by the better-than-expected return on fund assets
in these countries.
The changes in the pension provision and the pension
asset (reimbursement claims or right to reduce future
contributions to the funds) as disclosed in the balance
sheet can be derived as follows:
Germany United Kingdom Other Total
in € million 2012 2011 2012 2011 2012 2011 2012 2011
Balance sheet amounts at 1 January 440 85 1,300 1,202 442 275 2,182 1,562
Effect of first-time consolidation – – – – 2 1 2 1
Expense from pension obligations 167 189 133 113 66 47 366 349
Pension payments or transfers to external funds – 277 – 153 – 109 – 101 – 71 – 61 – 457 – 315
Actuarial gains (–) and losses (+)
on defined benefit obligations 2,046 – 18 309 376 166 135 2,521 493
Actuarial gains (–) and losses (+) on plan assets – 466 334 – 170 – 328 – 33 31 – 669 37
Employee contributions – 3 – – – – – 3
Translation differences and other changes – – 35 38 – 16 14 19 52
Balance sheet amounts at 31 December 1,910 440 1,498 1,300 556 442 3,964 2,182
thereof pension provision 1,910 440 1,498 1,300 557 443 3,965 2,183
thereof assets – – – – – 1 – 1 – 1 – 1
Germany United Kingdom Other Total
in € million 2012 2011 2012 2011 2012 2011 2012 2011
Current service cost 148 142 71 63 48 35 267 240
Expense from reversing the discounting of pension obligations 264 248 321 311 43 35 628 594
Past service cost 2 48 1 – 12 – 3 1 – 37
Expected return on plan assets – 247 – 249 – 260 – 249 – 22 – 24 – 529 – 522
Expense from pension obligations 167 189 133 113 66 47 366 349
The defined benefit plans of the BMW Group gave rise
to an expense from pension obligations in the financial
year 2012 of € 366 million (2011: € 349 million), compris-
ing the following components: